Natural justice requires hearing before reopening assessment; ex parte permission under trade tax law was set aside.

Permission to reopen an assessment under Section 21(2) of the U.P. Trade Tax Act, 1948 must be decided fairly and after affording a reasonable opportunity of hearing. An ex parte order granting reopening, passed without considering the assessee's reply and after an earlier refusal on the existing material, was held unsustainable because it breached natural justice and fair decision-making. The order was set aside, and any fresh decision had to be taken in accordance with law after hearing the assessee.

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Issues: Whether permission to reopen assessment under Section 21(2) of the U.P. Trade Tax Act, 1948 could be granted ex parte without affording the petitioner a reasonable opportunity of hearing.

Analysis: The impugned order granting permission to reopen the matter was passed without considering the petitioner's reply and without giving a reasonable opportunity to respond. The earlier order had already declined reopening on the basis of the material placed by the petitioner, and the subsequent ex parte order changed that position without hearing the petitioner. Such action offended the requirement of fairness in decision-making.

Conclusion: The ex parte order could not be sustained and was set aside. The petitioner was entitled to an of hearing before any fresh decision was taken in accordance with law.

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